China under Xi unveils the Boldest Reforms Policies in Decades

China recently unveiled its boldest series of social and financial reforms in nearly three decades. Several major changes take place as a part of these reforms. Beijing relaxed the imposition of the one-child policy and freed up their markets further to accommodate increased international market conditions. These sweeping alterations cleared doubts about the zest of the central leadership to initiate strong policies that can give a fresh lease of life to the stressed economy. The Chinese economy has been suffering from a breathneck speed of expansion to meet global workforce demands. This rapid expansion has been already showing signs of faltering. The Chinese leadership has been fast in recognizing the signs of a breakdown, and in taking the necessary steps to combat the growing financial and social concerns. However, it may take years for the reform effects to permeate.

The Communist Party released an official document following a 4-day conclave of the top leaders. This conclave consented on initiating residence and land registration reforms necessary in boosting the conveniences of the urban population. Present policy line dictates that the economy is about to ensure the transition to a western economic model based on services and consumption. The new reforms indicate that the market would be the key decisive factor in determining the pricing of electricity, fuels, and other major resources. Beijing also promised to hasten the opening of the national capital account for furthering financial liberalization.

Xu Hongcai, a senior economist at the International Economic Exchanges China Center described the reforms as ‘unprecedented’. The Beijing think tank notes that the earlier reforms had many limitations. The current reforms are ‘well-rounded’, on the contrary. Analysts explain that these are in the line of creating the same impact as the reforms in 1970-1980 by Deng Xiaoping. Those early reforms effectively opened up the markets of the country to increased international trade. President Xi Jinping continues to take the reformation further by undertaking several major changes. These include the abolition of controversial labor camps and the unification of the social security systems in the urban and rural regions.

The new policies would be in implementation according to the 60-point plan developed for the purpose. The fast actions by the president also eased confusions that it would take many years to formulate comprehensive policies on covering the responsibilities of the huge party and the government bureaucracy system. The president took to the office in March. Xi took the first steps by setting up a working group to look after the economic reforms along with a new state security council. Dali Yang, political science professor at the University of Chicago described the new leadership as ‘robust’ and ‘systematic’.

Observers and analysts note that these proposed reforms are the first steps to a long term plan of a huge transformation system. The primary focus of the transition would be on developing consumption reliability and tackling widespread discontent and inequality in the society. The latter concern poses a particularly critical concern to the leadership of the Chinese Communist Party.